Stories
Bond Yields Hit Yearly High Following RBI Policy Shift
M
Moneycontrol•07-10-2026, 11:41
Bond Yields Hit Yearly High Following RBI Policy Shift
- •Sovereign bond yields climbed five basis points to reach their highest level this year on October 7.
- •The Reserve Bank of India raised the repo rate by 25 basis points to 5.5 percent and shifted its stance to calibrated tightening.
- •The 10-year benchmark bond yield rose from 7.1903 percent to 7.2436 percent following the policy announcement.
- •RBI Governor Sanjay Malhotra stated that rate cuts are off the table in the near term with future actions limited to hikes or pauses.
- •Rising domestic yields were also influenced by elevated US bond yields and global market pressures.
Key Questions Answered
Sovereign bond yields rose five basis points to their highest level of the year on October 7, with the 10-year benchmark bond yield climbing to 7.2436 percent from 7.1903 percent.
The RBI's Monetary Policy Committee unanimously voted to increase the repo rate by 25 basis points to 5.5 percent and shifted its stance from "neutral" to "calibrated tightening".
The rise in domestic yields occurred against the backdrop of elevated US bond yields, with the 10-year US treasury yield hovering around 5.3 percent—close to its highest level since 2002—putting upward pressure on domestic markets.
